“UK taxpayers have been left more than GBP 100m out of pocket after a European court ruled that the Icelandic government had no obligation to repay Britain and the Netherlands for rescuing depositors in failed bank Icesave.”

The article goes on to say that a bank’s host nation has no responsibility for foreign depositors.

“The ruling also makes a mockery of the cross-border European banking rules. Governments are currently prohibited from stopping a bank operating in the country while remaining subject to the host nation’s regulator. The court ruling means that host nations have no responsibility for foreign depositors in the event of a collapse.”